A Home Ownership NOW loan (NOW) offers low to moderate-income homebuyers in Middle Tennessee three tiers of financial assistance depending upon the total household income. This is a second mortgage loan, available at very low interest rates and a low monthly payment of $50. With one phone call and a few simple forms, you will be on your way to home ownership.
Geographic Eligibility:
County
Zip Code
First Mortgage
Davidson
All Zips
The first mortgage loan must be a FHA, THDA, VA or conforming conventional loan offered by a FHA TN-approved lender.
Williamson *(FHA on the following zip codes only)
37027 37064 37065 37067 37068 37069
The first mortgage loan must be a conforming conventional loan offered by a FHA TN-approved lender.
*The first mortgage loan can also be a FHA loan if the property is located within the listed zip codes.
All other Nashville MSA counties
NA
First mortgage must be a conforming conventional loan offered by a FHA TN-approved lender.
The Nashville MSA includes the following counties: Cheatham, Davidson, Dickson, Robertson, Rutherford, Sumner, Williamson or Wilson counties (See above for loan products by county)
The home must be the buyer’s primary residence.
Requirements:
All NOW loans are secured by a Promissory Note and a Second Deed of Trust, subordinated only to a first mortgage
All borrowers are required to complete homebuyer education classes before closing. These classes are offered by THDA approved counseling agencies. THF will assist the client in locating the most appropriate and convenient agency.
Borrower must contribute at least 1% of the sales price from their own funds to the purchase
All borrowers must be at or below the area median income (AMI)
Income Criteria: (Effective 03/19/2009)
Tier 1 (60% of area media income)Your household gross (before take-out) income is at or below: 1 person:................. $27,200 2 people:................. $31,100 3 people:................. $35,000 4 people:................. $38,700 5 people:................. $42,000 6 people:................. $45,100 7 people:................. $48,200 8 people:................. $51,300
Clients can borrow up to $8500 for Closing Costs, Prepaids and Down Payment Assistance
The interest rate is 5%
Loan will include a variable recording fee and a processing fee of $350
Tier 2 (80% of area median income) Your household gross (before take-out) income is at or below: 1 person:................. $36,350 2 people:................. $41,500 3 people:................. $46,700 4 people:................. $51,900 5 people:................. $56,050 6 people:................. $60,200 7 people:................. $64,350 8 people:................. $68,500
Clients can borrow up to $7000 for Closing Costs, Prepaids, and Down Payment Assistance
The interest rate is 7%
Loan will include a variable recording fee and a processing fee of $350.00
Tier 3 (100% of area median income) Your household gross (before take-out) income is at or below: 1 person:................. $45,400 2 people:................. $51,900 3 people:................. $58,400 4 people:................. $64,900 5 people:................. $70,100 6 people:................. $75,300 7 people:................. $80,500 8 people:................. $85,700
Clients can borrow up to $5000 for Closing Costs, Prepaids, and Down Payment Assistance
The interest rate is 8%
Loan will include a variable recording fee and a processing fee of $350
Tier 4 (area median income above 100%) -(program has ended) Your household gross (before take-out) income is at or below:
$75,000 regardless of family size
Clients can borrow up to $7000 for Closing Costs, Prepaids, and Down Payment Assistance
The interest rate is 8%
Loan will include a variable recording fee and a processing fee of $350
Monthly payment is $100
Note: Tier 4 applications must have been received by November 13, 2009 and must close by January 31, 2010.
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Enrollment:
Interested borrowers should call THF at (615) 780-7000 to enroll in homebuyer education classes and for additional information
Borrower must complete a THF Borrower Application. This can be completed at THF or at the Homebuyer Education Agency.
Lenders should fill out the Request for Loan Approval Form and the Underwriting Guidelines; send the forms to THF along with the backup documentation requested; and tell the client to call THF to begin the homebuyer education
The Housing Fund cannot begin underwriting until we have received both a completed Borrower Application and Lender Loan package.
THF will work with the client’s closing attorney to fund the loan and funds will be wired at the time of closing